Contract offer: Good Calculator to use to calculate income with these details?

[ChrisHadfield]

Hello all,

I have a contract offer and know the following details:

Duration 6 months with a potential to extend to 12 months
Daily Rate + VAT
I know the daily mileage
Daily food expenses
It's outside IR35

What calculator can I use from the web that gives fairly accurate indication on total income based on this?

I know things are accounting fee are missing but I can factor that in after.

Thank you

[CatOnMat]

Hello all,

I have a contract offer and know the following details:

Duration 6 months with a potential to extend to 12 months
Daily Rate + VAT
I know the daily mileage
Daily food expenses
It's outside IR35

What calculator can I use from the web that gives fairly accurate indication on total income based on this?

I know things are accounting fee are missing but I can factor that in after.

Thank you

Surely if all you’re after is total income the a basic knowledge of arithmetic/Excel usage should suffice?

If OTOH you’re wanting to consider potential take home amounts then you’ll also need to factor in any income from other sources, tax code, any divis from other companies, how much you’re putting into pensions, fees & insurances, business entertaining etc, etc - so a bit more work but still not rocket science though.

Any “off the shelf” calculator will inevitably make assumptions for these various variables, which may greatly affect how close to your situation their results are likely to be.

[ChrisHadfield]

Hi CatOnMat

Yes I take your point, I just need some pointers or calculators that already calculate this where I can just insert values.

Please can you suggest some options?

I use this one: http://www.contractoruk.com/calculat...alculator.html

Annual Fee Income: In this field, do I enter my total income for the year? E.g. Day Rate of £500 * 5 days * 4 * 12 months?

Sorry I am trying to make this as accurate as possible. Or should I change it to £500*260?

[stek]

Best not to bother, you could be canned on day one.

[cojak]

Best not to bother, you could be canned on day one.

Smartarse comments aren’t helpful stek.

[CatOnMat]

Hi CatOnMat

Yes I take your point, I just need some pointers or calculators that already calculate this where I can just insert values.

Please can you suggest some options?

I use this one: Limited Company Tax Calculator

Annual Fee Income: In this field, do I enter my total income for the year? E.g. Day Rate of £500 * 5 days * 4 * 12 months?

Sorry I am trying to make this as accurate as possible. Or should I change it to £500*260?

Re: Annual Fee income it depends how much time you wanted to allow for holiday, training, sickness etc in a year and deduct them from the overall total of possible working days in the year (depends whether you expect to work weekends etc - although I presume not). You might also need to factor in that your client might enforce shutdown ("furlough") periods where you would not be billing either.

re 6 or 12 month period I would personally do 2 different calculations as even assuming things don't get curtailed there is typically no guarantee that extension will actually appear and you'd be more than ...

HTH

[northernladuk]

Why are you trying to make it so accurate?

If you are using freeagent then plug it in and you'll get the exact numbers.

Failing that tap Simon Dolan up to see if he's got a copy of a spreadsheet lying around you could pump the numbers in.

But I would say don't get so hung up on the exact figure. It will never be right.

[LondonManc]

260 days? On what planet is that realistic?

Let's forget VAT for now. At £500/day you get £1/day from collecting.

Day rate * expected days = revenue

Take off your salary (presume £11.5k)

Take off your other expenses:
mileage - 45p for first 10k, 25p thereafter
food - if you can prepare meals (assuming daily commute) then you shouldn't claim (based on what I've been told by my accountant).
insurance - whatever your PI, etc costs
accountancy costs

Whack all that in a spreadsheet and that will leave you with a *projected* profit figure for the year.

Calculate the corporation tax that you pay on it.

That leaves your net profit that you can take dividends from (don't forget your dividend tax calcs).

Rough figures, but we're not accountants; if you want a proper projected take home, ask yours.

[SueEllen]

260 days? On what planet is that realistic?

Yep.

He forgot the 8 bank and public holidays in England.

Then there are the days between Xmas and New Year the client won't want you to do work.

Plus his summer holiday - unless he wants to have a breakdown

Then the days for illness and other issues.

[MrMarkyMark]

Yep.

He forgot the 8 bank and public holidays in England.

Then there are the days between Xmas and New Year the client won't want you to do work.

Plus his summer holiday - unless he wants to have a breakdown

Then the days for illness and other issues.

Plus the fact he only has a 6 month contract in hand with only a best case scenario to extend by another 6 months.

The worst case alternative is the 6 month could finishes early, or he may not be extended, then there could be potential bench time.

Depends what its for, but whatever way you look at it these sorts of calcs are only useful to a degree.